Learn the Basics of Stock Trading
This is your guide to understanding how the stock market works and how to navigate it with confidence.
What is a Stock?
A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. When you own a company's stock, you are a shareholder.
Buying & Selling
The process of buying and selling stocks is a key part of the stock market. You buy a stock when you believe its value will increase, and you sell it to realize a profit or to minimize a loss.
Market Volatility
The stock market is known for its volatility, which refers to how much and how quickly a stock's price changes. Volatility can be an opportunity for profit, but it also carries a high level of risk.
Portfolio Diversification
Diversification is a risk-management strategy that mixes a wide variety of investments within a portfolio. The goal is to limit exposure to any single asset or risk. A diversified portfolio is often less volatile.
Bull vs. Bear Market
A "bull market" is a period when stock prices are rising or are expected to rise. A "bear market" is when prices are falling. Understanding these terms helps you grasp market sentiment.
Your Role as a Trader
As a trader in this simulator, your goal is to practice making informed decisions. Use the banking and stock dashboards to manage your portfolio, track market trends, and learn from every transaction you make.